4. Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $3,500 in employment-related miscellaneous itemized deductions. They also incur $5,500 of investment interest expense during the year. The Portersâ income for the year consists of $180,000 in salary, and $4,600 of interest income.
a. What is the amount of the Portersâ investment interest expense deduction for the year?
Investment interest expense deduction: ?
b. What would their investment interest expense deduction be if they also had a ($2,700) long-term capital loss?
Investment interest expense deduction: ?
4. Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $3,500 in employment-related miscellaneous itemized deductions. They also incur $5,500 of investment interest expense during the year. The Portersâ income for the year consists of $180,000 in salary, and $4,600 of interest income.
a. What is the amount of the Portersâ investment interest expense deduction for the year?
Investment interest expense deduction: ?
b. What would their investment interest expense deduction be if they also had a ($2,700) long-term capital loss?
Investment interest expense deduction: ?
Related questions
John and May are married with two dependent children, file a joint return. They provide you with the following information:
| Medical and dental expenses (not reimbursed) | $ 3,650 |
| State income taxes | 3,950 |
| Real estate taxes | 4,710 |
| Personal property taxes (ad valorem) | 325 |
| Interest on home mortgage | 17,800 |
| Form 4952 shows deductible investment interest | 800 |
| Charitable contributions (made by cash or check) | 2,000 |
| Form 4684 shows a casualty loss deduction | 600 |
| AGI | 188,850 |
What is the total amount of John and Mayâs itemized deductions?
Jeremy earned $140,000 in salary and $1,000 in interest income during the year. Jeremy has two qualifying dependent children who live with him. He qualifies to file as head of household and has $14,500 in itemized deductions. Neither of his dependents qualifies for the child tax credit. (use the tax rate schedules.). (Do not round intermediate calculations. Round "Income tax liability" to 2 decimal places.)
Tax Rate Schedule: https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/spilker_9e/taxrateschedulea.jpg
a:. Use the 2017 tax rate schedules to determine Jeremyâs taxes due.
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b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $6,500. What is Jeremyâs tax liability including the tax on the capital gain?
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c. Assume the original facts except that Jeremy had only $3,500 in itemized deductions. What is Jeremyâs total income tax liability?
DescriptionAmount
(1)Gross income$141,000
(2)For AGI deductions0
(3)Adjusted gross income
$141,000
(4)Standard deduction
(5)Itemized deductions
(6)
(7)Personal and dependency exemptions
(8)Taxable income
income tax liability
